SriLanka, Oct. 7 -- Exceeding earlier projections, growth in South Asia is expected to increase to 6.9 percent this year, with strong domestic demand keeping the region resilient to global shocks, according to the World Bank Group's twice-yearly regional outlook.

The latest South Asia Economic Update, Adopting AI for Growth, released yesterday said the strong growth is supported by robust domestic demand following strong remittance inflows and recent structural reforms. The report projects growth to slow to 6.7 percent in 2027 as headwinds mount. Persistently elevated energy prices could push inflation higher and tighten financial conditions, while a severe El Nino episode could affect agricultural output and food security, and a sharp r...